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Dowlais Group PLC (GB:DWL)
LSE:DWL
UK Market

Dowlais Group PLC (DWL) AI Stock Analysis

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GB

Dowlais Group PLC

(LSE:DWL)

Rating:64Neutral
Price Target:
72.00p
▲(7.78%Upside)
Dowlais Group PLC's stock is buoyed by strong technical momentum and positive corporate events, which enhance confidence. However, financial challenges and mixed valuation signals moderate the overall score, highlighting areas for potential improvement.
Positive Factors
Shareholder Interests
The update is seen as positive and aligns more closely with the interests of shareholders if the deal proceeds.
Synergies
The AXL board's confidence in achieving US$300m of full run-rate synergies is considered a positive aspect.
Negative Factors
Complexity of Merger
The merger is complex due to factors like US small cap share, voting, FX, antitrust, and bid risk, raising questions about whether it is the right deal for Dowlais and its shareholders.
Merger Concerns
The proposed merger is seen as undervaluing Dowlais, which is viewed as a disappointing move and a significant departure from its strategy.

Dowlais Group PLC (DWL) vs. iShares MSCI United Kingdom ETF (EWC)

Dowlais Group PLC Business Overview & Revenue Model

Company DescriptionDowlais Group Plc manufactures and sells automotive parts in the Americas, Europe, and Asia. The company engages in developing, manufacturing, and supplying automotive drive systems for conventional and electric vehicles. It manufactures sideshafts, propshafts, and constant velocity joints for passenger vehicles; and AWD systems and eDrive systems, as well as provides component solutions to systems, including control software. The company is also involved in the production of metal powders and powder metal parts for the automotive and industrial sectors, as well as the provision of hydrogen storage solutions. The company was formerly known as Dowlais Group Headquarters Plc and changed its name to Dowlais Group Plc in February 2023. Dowlais Group Plc was incorporated in 2023 and is based in London, the United Kingdom.
How the Company Makes MoneyDowlais Group PLC generates revenue primarily through the sale of its engineering and technology products and services. Key revenue streams include manufacturing contracts, technology licensing, and service agreements with clients across various industries. The company also earns income from strategic partnerships and joint ventures, which help expand its market reach and enhance its product offerings. By continuously investing in research and development, Dowlais Group ensures that it remains competitive and can offer innovative solutions that meet the evolving needs of its customers.

Dowlais Group PLC Financial Statement Overview

Summary
Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, high leverage and consistent net losses weaken overall financial health.
Income Statement
45
Neutral
The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.
Balance Sheet
55
Neutral
The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.
Cash Flow
40
Negative
Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.34B4.86B4.59B4.12B4.13B
Gross Profit
646.00M757.00M658.00M581.00M470.00M
EBIT
-106.00M-450.00M58.00M-121.00M-256.00M
EBITDA
345.00M31.00M386.00M263.00M342.00M
Net Income Common Stockholders
-173.00M-501.00M-82.00M-302.00M-199.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
354.00M313.00M270.00M275.00M141.00M
Total Assets
5.71B6.23B6.93B10.04B10.43B
Total Debt
1.44B1.31B1.26B2.71B2.77B
Net Debt
1.10B998.00M993.00M2.44B2.63B
Total Liabilities
3.40B3.67B3.72B5.21B5.63B
Stockholders Equity
2.27B2.53B4.93B4.80B4.78B
Cash FlowFree Cash Flow
-71.00M12.00M-12.00M55.00M205.00M
Operating Cash Flow
120.00M307.00M210.00M223.00M390.00M
Investing Cash Flow
-119.00M-262.00M-137.00M-115.00M-140.00M
Financing Cash Flow
17.00M23.00M-100.00M26.00M-364.00M

Dowlais Group PLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price66.80
Price Trends
50DMA
60.73
Positive
100DMA
62.73
Positive
200DMA
59.27
Positive
Market Momentum
MACD
1.29
Positive
RSI
60.09
Neutral
STOCH
70.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 66.8 is below the 20-day moving average (MA) of 66.85, above the 50-day MA of 60.73, and above the 200-day MA of 59.27, indicating a neutral trend. The MACD of 1.29 indicates Positive momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBXPS
78
Outperform
£805.19M12.8538.12%1.92%18.41%301.21%
73
Outperform
£903.92M52.248.64%0.63%2.70%-51.35%
GBDWL
64
Neutral
£894.42M-7.21%8.38%-10.83%64.55%
64
Neutral
£819.12M890.75%0.40%5.32%-152.26%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
GBAML
58
Neutral
£854.53M-39.39%-2.99%-26.87%
GBTHG
49
Neutral
£392.69M-27.20%-14.37%-28.78%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DWL
Dowlais Group PLC
66.80
0.18
0.27%
GB:CVSG
CVS Group plc
1,260.00
176.98
16.34%
GB:XPS
XPS Pensions Group Plc
384.50
118.56
44.58%
GB:AML
Aston Martin Lagonda Global Holdings plc
84.50
-56.80
-40.20%
GB:THG
THG
25.46
-39.24
-60.65%
GB:MOON
Moonpig Group Plc
247.50
94.98
62.27%

Dowlais Group PLC Corporate Events

Regulatory Filings and Compliance
Dowlais Group PLC Announces Change in Major Holdings
Neutral
Jun 13, 2025

Dowlais Group PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of financial instruments by Bank of America Corporation. This notification indicates a shift in the voting rights percentages held by Bank of America, increasing from 3.096842% to 4.249911%, which may impact the company’s governance and decision-making processes.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

M&A TransactionsShareholder Meetings
Dowlais Group Announces Increased Offer Price in AAM Acquisition Deal
Neutral
Jun 5, 2025

Dowlais Group PLC, in collaboration with American Axle & Manufacturing Holdings, Inc. (AAM), announced an increased offer price for its shares following the cancellation of shares held by the Melrose Employee Share Ownership Trust. This move is part of a strategic combination where AAM will acquire Dowlais, with shareholders receiving 0.0881 new AAM shares and 43 pence in cash per Dowlais share. The increased offer does not alter the total cash or share consideration by AAM, aside from minor rounding adjustments. The acquisition aims to strengthen AAM’s market position, with plans for a secondary listing on the London Stock Exchange. A special meeting for AAM stockholders is scheduled for July 2025 to approve the issuance of new shares.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £100.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group PLC Reports Change in Voting Rights
Neutral
Jun 3, 2025

Dowlais Group PLC, a UK-based company, has reported a significant change in its voting rights structure following an acquisition or disposal of voting rights by JPMorgan Chase & Co. The notification indicates that JPMorgan Chase & Co. now holds a total of 5.300941% of voting rights in Dowlais Group PLC, with a substantial portion through financial instruments. This change in voting rights may impact the company’s governance and strategic decision-making, reflecting JPMorgan’s increased influence in the company’s operations.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group PLC Announces Change in Voting Rights Structure
Neutral
Jun 3, 2025

Dowlais Group PLC, a UK-based company, has announced a significant change in its voting rights structure due to acquisitions and disposals by BNP Paribas SA. The notification reveals that BNP Paribas has crossed a threshold of 5% in voting rights, now holding a total of 5.008598% in Dowlais Group PLC. This change in holdings could influence the company’s decision-making processes and impact its strategic direction, given BNP Paribas’s increased influence.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividendsBusiness Operations and Strategy
Dowlais Group PLC Secures Shareholder Approval for Key Resolutions at 2025 AGM
Positive
May 21, 2025

Dowlais Group PLC held its 2025 Annual General Meeting where all proposed resolutions were approved by shareholders through a poll. Key resolutions included the approval of the company’s annual report, directors’ remuneration, a final dividend, and the re-election of several directors. Additionally, Deloitte LLP was re-appointed as auditors, and the board was granted authority for share allotment and market purchases. These approvals reflect strong shareholder support and provide the company with the flexibility to pursue strategic initiatives and maintain its governance structure.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £120.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group Sees Change in Major Holdings
Neutral
May 20, 2025

Dowlais Group PLC, a UK-based company, has announced a significant change in its financial instrument holdings. Bank of America Corporation has adjusted its position in Dowlais Group, reducing its total voting rights from 3.205089% to 2.651186%. This change reflects a shift in the financial landscape for Dowlais Group, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £120.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Dowlais Group Reports Q1 2025 Performance Amid Market Volatility
Neutral
May 8, 2025

Dowlais Group PLC reported a trading update for Q1 2025, indicating performance in line with expectations despite a challenging market environment. The company’s adjusted revenue saw a slight decline due to foreign exchange impacts and lower volumes in certain segments, although its operating margin improved. The automotive sector faced a decline in driveline revenue, while ePowertrain and the China joint venture showed growth. Powder metallurgy revenues decreased, particularly in Europe and North America. The company anticipates a weaker first half due to tariff impacts but expects recovery in the second half. Full-year performance is projected towards the lower end of guidance, with ongoing restructuring and performance initiatives expected to mitigate challenges.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Dowlais Group PLC Releases 2024 Annual Report and AGM Notice
Neutral
Apr 10, 2025

Dowlais Group PLC has released its 2024 Annual Report, Notice of the 2025 Annual General Meeting (AGM), and Form of Proxy for the AGM to shareholders. These documents are available on the National Storage Mechanism and the company’s website. The AGM is scheduled for May 21, 2025, at Investec Bank plc’s London office. This publication ensures transparency and compliance with regulatory requirements, providing stakeholders with essential information about the company’s performance and governance.

Regulatory Filings and Compliance
Dowlais Group PLC Announces Change in Voting Rights
Neutral
Mar 20, 2025

Dowlais Group PLC announced a change in the voting rights held by Ninety One UK Ltd, which has decreased from 5.079900% to 4.969200%. This adjustment in voting rights reflects a disposal of shares, which may influence the company’s shareholder dynamics and could have implications for its governance structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.